Hong Kong’s Top Commercial Landlord Reports Strong Lease Uptick Amid CBD Rebound

Hong Kong’s dominant commercial property operator has recorded a 22% year-on-year increase in new lease commencements across its Central Business District holdings, with occupancy rates climbing to 93.7% in Q4 2025, up from 87.4% a year earlier. The uptick reflects growing confidence among multinational firms returning to the city’s primary financial hub, with lease agreements signed by 14 new tenants across banking, legal, and consulting sectors in the quarter alone. The company’s portfolio, which includes over 1.2 million square feet of Grade A office space in Central and Admiralty, now generates 76% of its rental income from non-local tenants, a significant shift from the 58% share seen in 2023. This international re-engagement underscores a broader trend of Hong Kong regaining its status as a cross-border business gateway, particularly for Greater China and Southeast Asian operations. The momentum has translated into market performance: the company’s REIT, listed on the Hong Kong Stock Exchange under ticker EWH, rose 14% over the past six months, outperforming the broader ^HSI index by 5 percentage points. The H1 2025 dividend payout was increased by 8.2%, reflecting improved cash flow from higher occupancy and rent escalations. The recovery is also influencing regional dynamics, with capital flows into Asian real estate funds rising by 19% in Q4, according to independent market trackers. Financial institutions and institutional investors are increasingly allocating to Hong Kong REITs, citing stable yields of 6.1%–7.3%, which now exceed those of many developed market counterparts.